Chic in the blink of an eye

Macaroni Penguin popped up in Newmarket for four weeks. Photo / Supplied

Savvy retailers are creating a sales storm by ditching long-term leases to spring up in surprise locations, then close down days later.

Not to be confused with clearance shops, the idea behind these "now you see them, now you don't" retail manifestations is to pop up in an unexpected space, create a buzz by word-of-mouth marketing, then leave.

James Dobson, designer of fashion label Jimmy D and co-owner of the Children of Vision boutique in Auckland, describes the temporary shops as mini concept stores, and thinks the term "pop-up" is sometimes misused as a "cool" way of describing something that is simply a sale store.

In its original sense, he says there is "a kind of art direction that goes beyond a rack of clothes in a cheap space for a limited time".

Dobson speaks of a purity to this form of retailing and an aesthetic of using simple, inexpensive materials creatively for fittings and fixtures.

"More than ever I think people aren't dazzled by flashy, overly slick spaces. Internationally, labels and retailers like Comme des Garcons, Komakino, and London's Convenience Store have proven you can find high-end clothing off the beaten track, in deliberately lo-fi surroundings."

And the pop-up store phenomenon is flourishing as recessionistas seek less showy shopping experiences.

"I think the recession has made people re-evaluate how they shop, and pop-up stores feel more independent and less ostentatious."

Pop-up shops take on many guises, and are often used to promote new product lines. Mark Pickering, of experiential marketing agency AmbientX, ran a campaign for Campbell's Velish Soup, setting up pop-up cafe sites as well as mobile Campbell's Velish Soup Kitchens for one week in the CBDs of Auckland and Wellington.

They were promoted through leaflet drops to businesses, on radio and via a personalised Facebook fan page in which people interacted with the kitchen and gave their feedback. The kitchens attracted 5400 visitors and 324 Facebook fans, creating an immediate sales uplift and increased brand awareness.

Murray Bevan, of fashion PR agency Showroom 22, made his first foray into pop-ups because many of his designer clients had been left high and dry when retailers they sold to went under or were unable to pay for orders as the economy tanked, leaving them with product to move.

With the recession having spawned a glut of vacant retail spaces, Bevan had no trouble sourcing temporary Newmarket premises through Auckland fashion real estate specialist and director of Match Realty, Aubrey Cheng.

For the month of May, the pop-up - named Macaroni Penguin - took over space previously occupied by Stenbeck & Morse, which had shut up shop earlier in the year.

It was used to sell current and past season's stock, promoted as a quirky, fast-paced fashion boutique rather than as a bargain shop. Bevan put the word out through his networks, as well as getting it on to various blog sites and placing an advertisement on George FM.

"People were excited about the concept being new, young and eventful, and we were able to move stock at a higher rate than the stores around us."

Bevan says the allure of pop-up stores is that, for a limited time, they provide product not otherwise available in the area, such as samples, one-offs and end-of-lines.

Keeping a retail store afloat and interesting is hard slog for those still establishing their brands, Bevan says. "You're better to do it quickly and smartly - get in and get out."

A pop-up store Dobson organised recently called The Darkroom lasted only three days, offering pieces from his label as well as from Zambesi, Nom*d, Lonely Hearts, Cybele and Deborah Sweeney at significant mark downs.

And they offer the thrill of the hunt, says Dobson. "When you venture away from large flagship stores to smaller, harder-to-find boutiques, you are probably going to find a piece that is limited and more exclusive."

He promoted The Darkroom through word-of-mouth, contacting customer databases and using social media such as Twitter and Facebook.

"We cram a lot of sales into a very small amount of time, there are lower margins to be made, but they are always very successful, and it's a good injection of cash flow," Dobson says.

He hasn't found it tricky to rent sites short-term either. "It was just a case of finding a space we liked that was pretty much a raw shell of an environment that we could easily pop up in and then getting in touch with the landlord and seeing if they were keen to rent it out for a few days. A few said no, but we got the best space in the end."

Short-term gain beats long-term pain

Shaz Dixon has found retailing designer homeware through temporary retail premises, or "pop-up shops", far more lucrative than being locked into a long-term lease on a standard store.

It's advantageous for customers too - lower overheads let her pass on lower prices - but she admits it's best suited to those who love change. Her first pop-up venture was in Mairangi Bay on Auckland's North Shore last month, and she's already moved on to stores in Orewa and Pukekohe.

Dixon has been in importing and wholesaling for 25 years and in retail for the past eight under the brand Styledirect. But with the recession whacking turnover, Dixon negotiated her way out of Styledirect's leased premises on Ponsonby Rd, and cut deals with her suppliers to stock her pop-up shops.

"When times got tough and I saw lots of empty retail sites around, I knew that wholesalers would be sitting on stock they needed to move and that I could negotiate some very sharp prices."

Dixon has found plenty of landlords willing to rent short-term. "So many businesses are folding, there are so many shops for rent, that's why they're not hard to come by. But you can't just sit around waiting for the customers to come to you, you have to take yourself to the customers."

Planning a series of stores to pop up for Christmas, Dixon favours trying different neighbourhood shopping areas and is currently scoping Howick's shopping strip.

She starts marketing before opening, using innovative approaches such as arranging advertisements in school newsletters in exchange for sponsorship.